Hana Mining Ltd.: Diamond Drilling Extends the Strike and Down Dip Extension of High-Grade Copper-Silver Mineralization at the Northeast Fold of the Banana Zone
VANCOUVER, BRITISH COLUMBIA -- (Marketwire) -- 03/28/12 -- Hana Mining Ltd. ("Hana" or the "Company") (TSX VENTURE: HMG)(FRANKFURT: 4LH) is pleased to announce its most recent drilling results from the completion of eight infill and down-dip extensional diamond-drill holes at the Banana Zone at its Ghanzi sediment hosted Copper-Silver Project in Botswana. Extensional drilling at the Northeast Fold area ("NEF") has increased the down-dip extension of copper-silver mineralization by approximately 50 metres or by 25%.
Infill and extensional drilling was carried out on NEF (between sections 69725 to 70425; Figures 1 and 2) to convert a substantial amount of the NI 43-101 compliant resources within this area into the Indicated category from the Inferred category.
These results are from new holes and are in addition to those used in the most recent NI 43-101 compliant Indicated and Inferred mineral resource calculation (see Table 1 at the end of this press release for the results from all eight drill holes). The mineralization remains open at depth and along strike.
Highlights of recent drilling results:
The latest results demonstrate that Banana Zone contains areas which host high-grade copper-silver mineralization.
-- Core lengths intercepts of:
-- 6.25% CuEq(1)(5.31% Cu and 64.0 g/t Ag) over 2.2 metres in the
footwall sandstones and 4.11% CuEq(1)(3.90% Cu and 14.0 g/t Ag) over
14.9 metres within a wider mineralized interval of 2.17%
CuEq(1)(2.06% Cu and 8.0 g/t Ag) over 31.0 metres in the hanging
wall in hole HA-510-D,
-- 6.58% CuEq(1)(6.42% Cu and 11.0 g/t Ag) over 3.3 metres within a
wider mineralized interval of 2.12% CuEq(1)(2.06% Cu and 4.0 g/t Ag)
over 11.0 metres in hole HA-505-D,
-- 3.09% CuEq(1)(2.30% Cu and 54.0 g/t Ag) over 5.6 metres within a
wider mineralized interval of 1.29% CuEq(1)(0.98% Cu and 21.0 g/t
Ag) over 17.0 metres in hole HA-502b-D (extensional hole),
-- 2.27% CuEq(1)(2.11% Cu and 11.0 g/t Ag) over 2.4 metres within a
wider mineralized interval of 0.53% CuEq(1)(0.50% Cu and 2.0 g/t Ag)
over 32.5 metres in hole HA-504c-D.
(1) Copper equivalent calculated using US$3.00/lb Cu, US$30/oz Ag and is not adjusted for metallurgical recoveries. The formula used is as follows: CuEq = Cu% + (Ag g/t x 0.01458).
Discussion of Results:
Drill holes HA-501-D, HA-502b-D, HA-504c-D, HA-505-D and HA-507-D are the remaining holes from the 2011 infill drilling program at the NEF area that will be included in the upcoming resource estimate which will also be included in the upcoming Preliminary Economic Assessment. Drill holes HA-508-D, HA-509-D and HA-510-D are the initial holes from the 2012 drilling campaign at the NEF area. Holes HA-502-D, HA-508-D and HA-509-D represent down-dip extensions of mineralization at NEF.
The NEF area consists of a plunging anticline where up to four intervals of high-grade copper mineralization within a broader low grade mineralized envelope were encountered within the hanging siltstones and mudstones and footwall sandstones (Figure 3). The latest drilling results from the NEF infill drilling program continue to add significant high-grade copper over thick intervals within the NEF area and cover additional extensions along the fold plunge axis, dip and at depth. This zone is still open along strike and at depth.
Extensional drilling increased the down dip extension of mineralization by approximately 50 metres which will increase the Indicated and Inferred resources in this area. This prolific zone is still open along strike and at depth.
To view Figures 1, 2 and 3, visit: http://media3.marketwire.com/docs/hmg328_F1-3.pdf.
Development Update
The following engineering and consultation activities are ongoing:
-- Work on the revised resource estimate for the Banana Zone is continuing
as expected and the Company expects to release the results of this
resource estimate in the second quarter of 2012.
-- Work continues on the Preliminary Economic Assessment ("PEA") which is
also expected to be completed in the second quarter of 2012.
Hana Mining's CEO and Chairman, Marek Kreczmer, commented as follows:
"The latest outstanding drilling results are again due to the application of our new geological model to the NEF area of the Banana Zone in which high-grade copper-silver mineralization was encountered not only in the hanging wall of the D'Kar siltstone but also as high-grade veins within the Ngwako Pan sandstone.
The extensional drilling at NEF has increased the down-dip extension of copper-silver mineralization by an additional 50 meters which we expect will increase the grade and tonnes of Indicated and Inferred Resources at NEF. To put this in perspective, the current resources at NEF were previously calculated to depth between 150 to 200 metres. This high-grade zone remains open along strike and depth."
Qualified Person and Quality Assurance/Quality Control
The drilling program and results are reviewed and approved by Marek Kreczmer, Chief Executive Officer for Hana. He is the qualified person as defined in NI 43-101 and has reviewed the technical information in this press release.
Drill core is logged and photographed. Mineralized intervals are split in half by sawing and sampled at site. The remainder of the core is kept as a permanent record. Samples are placed into labelled bags, closed and packed into sealed bags that are shipped to ALS Chemex Laboratory in Johannesburg, South Africa or Scientific Services Laboratories in Cape Town, South Africa. Hana has implemented an industry-standard QA/QC program that includes the blind insertion of certified standards, duplicates and blanks into the sample stream.
About Hana Mining's Ghanzi Copper-Silver Project in Botswana:
The Ghanzi Project is located in the center of the Kalahari Copper Belt in northwestern Botswana. The Ghanzi property covers 2,149 square kilometres, and contains sediment - hosted copper-silver deposits with a demonstrated cumulative tested strike length of 70 kilometres. This favorable geology extends over an estimated strike length of 600 kilometres. Hana Mining released results of its most recent NI 43-101 compliant resource estimate for the Ghanzi Project on December 20, 2010, announcing an Indicated mineral resource of 585 million pounds of copper and 12 million ounces of silver from 19.7 million tonnes at a grade of 1.35% copper and 19.7 g/t silver. All of the Indicated resources are from the Banana Zone. There are also Inferred resources of 2.4 billion pounds of copper and 40.6 million ounces of silver from 91.2 million tonnes. This Inferred mineral resource estimate consists of 69.9 million tonnes grading 1.10% Cu and 14.98 g/t Ag in the Banana Zone, 13.4 million tonnes grading 1.66% Cu and 12.11 g/t Ag in Zone 5, 6.3 million tonnes grading 1.5% Cu and 6.7 g/t Ag in Zone 6, and 1.6 million tonnes grading 0.85% Cu and 6.4 g/t Ag in the Chalcocite Zone; all at a cut-off grade of 0.75% Cu.
The Banana Zone exhibits certain areas of higher grade Cu and Ag mineralization, particularly between sections 49700 to 52000 on the North limb and sections 63000 to 71000 on both the North and South limbs, which represent an opportunity to locate starter pits and mine initial tonnages at higher than average grades. These higher grade pockets tend to be well within open pit depth parameters and represent opportunities to improve early cash flow and overall returns in development.
The project will benefit from proposed rail and power infrastructure expansions, along with proximity to local population centers and workforce. A feasibility study is currently underway (funded by the World Bank and the governments of Botswana and Namibia) to support completion of a rail line link that would connect Botswana with the Namibian port of Walvis Bay, on the Atlantic coast. The closest existing railhead to port is at Gobabis, in Namibia, approximately 550 km from our property. Construction has begun on the 600MW expansion of the government-owned Moropule Power Plant, having secured US$825 million project funding in May 2009. The Ghanzi Copper-Silver Project is currently accessed by the paved Trans-Kalahari highway, which passes within 15 km of the property.
The Ghanzi property is one of Africa's premier future copper-silver resources.
Table 1: Drill Results from Northeast Fold, Banana Zone, Sections 69725 - 70425 Interval indicates down hole interval (Holes HA-502-D, HA-508-D and HA-509-D are extensions of the dip)
----------------------------------------------------------------------------
Est.
True
Mineralized From To Interval Width Cu Eq Cu Ag
Hole # Section Zone (m) (m) (m) (m) (%) (%)(g/t)
----------------------------------------------------------------------------
Northeast Fold Diamond Drilling
----------------------------------------------------------------------------
HA-501-D NF70425 Northeast
Fold 97.72 111.00 13.28 13.28 0.52 0.49 2.0
includes 101.07 103.03 1.96 1.96 1.31 1.23 6.0
includes 108.00 111.00 3.00 3.00 1.08 1.05 2.0
HA-501-D 126.00 134.29 8.29 8.29 1.14 0.79 24.0
----------------------------------------------------------------------------
HA-502b-D NF70325 Northeast
Fold 178.00 195.00 17.00 17.00 1.29 0.98 21.0
includes 187.68 193.28 5.60 5.60 3.09 2.30 54.0
----------------------------------------------------------------------------
HA-504c-D NF70225 Northeast
Fold 28.06 60.54 32.48 32.48 0.53 0.50 2.0
includes 28.82 37.00 8.18 8.18 0.91 0.89 1.0
includes 57.25 59.62 2.37 2.37 2.27 2.11 11.0
----------------------------------------------------------------------------
HA-505-D NF70125 Northeast
Fold 26.00 37.00 11.00 11.00 2.12 2.06 4.0
includes 26.00 29.31 3.31 3.31 6.58 6.42 11.0
----------------------------------------------------------------------------
HA-507-D NF70125 Northeast
Fold 20.35 33.00 12.65 12.65 0.34 0.33 1.0
includes 27.14 29.19 2.05 2.05 1.10 1.08 1.0
----------------------------------------------------------------------------
HA-508-D NF69825 Northeast
Fold 234.14 245.20 11.06 11.06 0.56 0.46 7.0
includes 239.00 240.83 1.83 1.83 2.32 1.85 32.0
----------------------------------------------------------------------------
HA-509-D NF69725 Northeast
Fold 208.15 236.30 28.15 28.15 0.33 0.26 5.0
includes 232.75 234.55 1.80 1.80 3.35 2.65 48.0
----------------------------------------------------------------------------
HA-510-D NF70425 Northeast
Fold 81.00 112.00 31.00 31.00 2.17 2.06 8.0
includes 88.00 102.88 14.88 14.88 4.11 3.90 14.0
includes 108.70 111.31 2.61 2.61 1.05 1.02 2.0
HA-510-D 131.00 133.23 2.23 2.23 6.25 5.31 64.0
----------------------------------------------------------------------------
Copper equivalent calculated using US$3.00/lb Cu, US$30/oz Ag and is not adjusted for metallurgical recoveries. The formula used is as follows: CuEq = Cu% + (Ag g/t x 0.01458).
Statements in this press release, other than purely historical information, including statements relating to the Company's future plans and objectives or expected results, may include forward-looking statements. Forward-looking statements are based on numerous assumptions and are subject to all of the risks and uncertainties inherent in resource exploration and development. As a result, actual results may vary materially from those described in the forward-looking statements.
The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.
Contacts:
Hana Mining Ltd.
Marek Kreczmer
CEO
(604) 676-0824
info@hanamining.com
Hana Mining Ltd.
Patrick Donnelly
VP - Corporate Development
(604) 676-0824
patrick@hanamining.com
www.hanamining.com